Getting a mortgage is a process. And throughout that process, there are a number of mistakes you can make that can be extremely expensive.
So what are those mistakes, and how can you avoid them?
A recent article from realtor.com outlined some of the most costly mortgage mistakes people make when buying their home, including:
- Not shopping around. Many buyers go with the first mortgage they find. But failing to shop around is a mistake that can cost you tens of thousands of dollars over the course of your loan. Why? Not all mortgages are created equal; if you want to get the best deal and terms, you need to do your research, shop around, and compare your options before moving forward with a loan.
- Lying on the mortgage application. Some people think lying on their mortgage application — for example, exaggerating their income — can help them get a better loan. But if your lender finds out you lied, they can make your loan immediately due in full, and you could find yourself facing legal issues.
- Making a major life change before or during the mortgage process. Stability is important to lenders, which is why the last thing you want to do immediately before or during the mortgage process is make any major life changes, like quitting your job. Big changes can make your lender question whether you have the stability to repay your loan. If they decide you’re not stable enough, they could opt to not move forward with your mortgage.